The New York Times Company

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Deutsche Bank Media and Telecom Conference, June 10, 2008

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  • The New York Times Company

    1. 1. Deutsche Bank Media and Telecom Conference June 10, 2008
    2. 2. Janet Robinson President & Chief Executive Officer James Follo Senior Vice President & Chief Financial Officer Scott Heekin-Canedy President & General Manager The New York Times Martin Nisenholtz Senior Vice President Digital Operations
    3. 3. Challenging Environment
    4. 4. Our Competitive Advantages <ul><li>Powerful and trusted brands </li></ul><ul><li>High-quality content </li></ul><ul><li>Educated, affluent audience greatly valued by advertisers across all platforms </li></ul>
    5. 5. Leader in Innovation <ul><li>First among peers to integrate our print and digital newsrooms </li></ul><ul><li>First to integrate print and digital sales staffs </li></ul><ul><li>First in our industry to create R&D Group </li></ul>
    6. 6. Transforming The Times Company
    7. 7. Focused Strategy and Strong Execution <ul><li>Introducing new products and services in print and online </li></ul><ul><li>Building our digital research and development capability </li></ul><ul><li>Aggressively managing costs </li></ul><ul><li>Rebalancing our portfolio of businesses through both acquisitions and divestitures </li></ul>
    8. 8. We Are Making Progress <ul><li>April YTD: </li></ul><ul><ul><li>Online advertising revenues up 18% </li></ul></ul><ul><ul><li>Circulation revenues up 2% </li></ul></ul><ul><li>First Quarter ‘08: </li></ul><ul><ul><li>Operating costs down 1% </li></ul></ul>
    9. 9. Managing our Print and Digital Businesses
    10. 10. Style with a Capital Luxury Advertising Continues to Grow
    11. 11. Style with a Capital Luxury Advertising Continues to Grow
    12. 12. International
    13. 13. Cross Platform Sales Are Increasing
    14. 14. New Products at The Boston Globe
    15. 15. Building Online Communities
    16. 16. Circulation Revenues are Rising <ul><li>Moving away from less profitable circulation </li></ul><ul><li>April YTD circulation revenues up 2% </li></ul>
    17. 17. Total Times Audience Growing <ul><li>Added three national print sites </li></ul><ul><li>Print edition reaches 4.8 million readers each weekday and 6.3 million on Sunday </li></ul><ul><li>NYTimes.com had 17.9 million unique visitors in the U.S., up 30% YoY </li></ul>Sources: Scarborough Research, USA +, Release 2, 2007 Nielsen Online, April 2008
    18. 18. Significant Online Presence Source: Nielsen Online April 2008 49,721 Walt Disney 10 49,313 New York Times Co. 11 55,677 Amazon 9 56,259 Wikimedia Foundation 8 64,098 InterActive Corp. 7 67,047 eBay 6 76,453 News Corp. 5 105,566 Time Warner 4 117,065 Yahoo! 3 122,059 Microsoft 2 128,188 Google 1 Uniques in thousands Company Rank
    19. 19. Internet Strategy Producing Strong Results Internet Strategy Attract Users Increase Monetization Deepen Engagement
    20. 20. Growing Our Digital Businesses 2004 2005 2006 2007 Digital Revenues April YTD +13% Online Ad Revenues April YTD +18%
    21. 21. Building Out Key Verticals
    22. 22. Enhancing Our Verticals <ul><li>50+ blogs </li></ul><ul><li>2,500+ videos </li></ul>
    23. 23. Bifurcated Marketplace NYTimes.com Display Revenues April YTD Up 28%
    24. 24. New Online Ad Campaigns
    25. 25. Strong Performance Continues at the About Group Revenues April YTD Up 23%
    26. 26. Expanding About’s Content <ul><li>~720 Guides covering 70,000 topics </li></ul><ul><li>Plan to increase number of Guides and develop sub-Guides around topics </li></ul>
    27. 27. Display Opportunities at About Display Advertising is ~ 40% of About Group’s revenues
    28. 28. User-Inspired Solutions <ul><li>Guides interact frequently with users and are great sources of knowledge about them, their preferences and needs </li></ul><ul><li>Help create effective and better-targeted programs for our advertisers </li></ul>Marketer Users About.com Guides
    29. 29. Vibrant R&D Capability <ul><li>16.5M mobile page views in Apr. ‘08 </li></ul><ul><li>Up from 500,000 in Jan. ‘07 </li></ul>
    30. 30. Relationships with Leading Web Entities <ul><li>Combined our market leading sites with Monster’s technology & database to create co-branded sites targeting local & national recruitment markets </li></ul><ul><li>The Times Company continues to be among Google's largest content providers </li></ul><ul><li>Yahoo! provides advertising and search services and sell our local sites’ inventory to national accounts </li></ul><ul><li>Created by four media companies, quadrantOne offers high-quality local audience and national reach </li></ul>
    31. 31. Transforming The Times Company
    32. 32. James Follo Senior Vice President & Chief Financial Officer
    33. 33. Building For Our Future <ul><li>Heightened Emphasis on: </li></ul><ul><ul><li>Financial discipline </li></ul></ul><ul><ul><li>Greater efficiency </li></ul></ul><ul><ul><li>Greater productivity </li></ul></ul><ul><li>Expect to save $230 million in 2008 and 2009* </li></ul>* Excluding the effects of inflation, buyouts and one-time costs as compared to our year-end 2007 cash cost base
    34. 34. Lower Capex Expected in 2008 <ul><li>Recently completed two major capital projects </li></ul><ul><li>Capital spending expected to be $150-$165 million in 2008 versus $380 million in 2007 </li></ul>
    35. 35. Streamlining Our Businesses <ul><li>Consolidated New York-area plants </li></ul><ul><li>Reduced the printed page size of many of our papers </li></ul><ul><li>Shifting away from less profitable circulation </li></ul><ul><li>Standardizing, streamlining and consolidating processes </li></ul>
    36. 36. Streamlining Our Businesses <ul><li>Managing cost reduction measures carefully to ensure: </li></ul><ul><ul><li>the quality of our journalism </li></ul></ul><ul><ul><li>the smooth functioning of our operations </li></ul></ul><ul><ul><li>our ability to grow our digital businesses </li></ul></ul>
    37. 37. <ul><li>Be consistent with our core purpose, values and strategy </li></ul><ul><li>Offer a sustainable competitive advantage </li></ul><ul><li>Be realistically capable of successful execution </li></ul><ul><li>Provide an attractive ROIC </li></ul><ul><li>Fit into the organization in a manner that ensures successful execution </li></ul>Disciplined Approach to Acquisitions Every acquisition must pass a five-part test:
    38. 38. Over $500M in Acquisitions & Investments in New Media Since 2005 Acquisitions Investments
    39. 39. <ul><li>2006 </li></ul><ul><li>Sold our investment in Discovery Times Channel for $100 million </li></ul><ul><li>2007 </li></ul><ul><li>Sold Broadcast Media Group for $575 million </li></ul><ul><li>Sold WQEW-AM for $40 million </li></ul>Divestitures Totaling More Than $700 Million
    40. 40. Transforming The Times Company <ul><li>Trusted brands </li></ul><ul><li>New products in print and online </li></ul><ul><li>Strong growth in digital revenues </li></ul><ul><li>Proven commitment to cost reduction </li></ul><ul><li>Solid balance sheet </li></ul>
    41. 41. Q&A
    42. 42. Forward-Looking Statements <ul><li>Except for the historical information contained herein, the matters discussed in this presentation are forward-looking statements that involve risks and uncertainties that could cause actual results to differ materially from those predicted by such forward-looking statements. These risks and uncertainties include national and local conditions, as well as competition, that could influence the levels (rate and volume) of retail, national and classified advertising and circulation generated by our various markets and material increases in newsprint prices. They also include other risks detailed from time to time in the Company’s publicly filed documents, including the Company’s Annual Report on Form 10-K for the year ended December 30, 2007. The Company undertakes no obligation to publicly update any forward-looking statement, whether as a result of new information, future events or otherwise. </li></ul>

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